Reference no: EM132447191

Question - Derrick Company has two service departments (Cafeteria Services & Maintenance). Derrick has two production departments (Assembly Department & Packaging Department.) Derrick uses a step allocation method where Cafeteria Services is allocated to all departments and Maintenance Services is allocated to the production departments. All allocations are based on total employees. Cafeteria Services has costs of $300,000 and Maintenance has costs of $275,000 before any allocations.

Employees are:

Cafeteria Services 3

Maintenance 4

Assembly Department 10

Packaging Department 11

Compute amount of Maintenance total cost is allocated to the Packaging Department?